Tri-Cities credit union market gets more competitive. Idaho’s giant plans big expansion
The competitive market for credit unions in the Tri-Cities is about to get more competitive as Idaho’s largest credit union prepares to expand its reach in Washington.
Idaho Central Credit Union, based in Chubbuck, near Pocatello, is quietly preparing to build at least three branches on properties it purchased in Kennewick, Pasco and Richland.
A spokeswoman said it does not have a timeline or details to share about its Tri-Cities plans.
Idaho Central is a larger, state chartered, federally insured credit union serving nearly 640,000 members and has $11.4 billion in assets, according to the National Credit Union Administration. It operates branches in Idaho and has made inroads into Eastern Washington with branches in Spokane, Spokane Valley and Liberty Lake.
Banks v credit unions
The expansion would mark its entry in the Tri-Cities market, already served by a mix of large and small credit unions. Credit unions are nonprofit member-owned financial institutions. Unlike traditional banks, they do not pay income taxes, a longstanding point of contention between the two business models.
Credit union expansions are driven by population growth, diversification and sometimes, changes with local banks, said the GoWest Credit Union Association, which serves credit unions in six western states, including Idaho and Washington.
GoWest notes that there were 77 bank branches in Benton, Franklin and Walla Walla counties in 2012. That dropped to 62 by 2023.
Over the same period, credit union branches grew to 35, from 27.
“There continues to be a national trend of credit unions opening branches where large banks pull out of certain communities and close branches,” it said.
The Washington Bankers Association called the expansion “troubling,” in a statement attributed to its president and CEO, Glen Simecek. Simecek said the trend is due to the tax and other advantages credit unions enjoy that banks do not.
“If the playing fields were level, we would expect banks to acquire credit unions. Instead, the trend is only going one way,” he said.
ICCU in Tri-Cities
Idaho Central bought development sites in Kennewick, Pasco and Richland and is working to build branches on all three, according to documents filed with their respective planning departments.
- In Kennewick, it has applied for a building permit for a 4,900-square-foot branch at 3720 S. Zintel Way, near Canyon Lakes. It paid $784,000 for the 1.5-acre site in February 2023.
- In Richland, it has applied for a building permit for a 5,000-square-foot branch at 3180 Duportail St., near Dairy Queen. It paid $1 million for the 1.4-acre site in September 2023.
- In Pasco, it has not applied for a building permit, but it has discussed its plans with the city and initiated an environmental review. It paid $2.2 million for a 2-acre site at North Road 68 and Three Rivers Road, north of Sandifur Parkway in 2023.
The Tri-Cities, home to two of the state’s Top 10 credit unions, has attracted growth in recent years.
Notably, Spokane Teachers Credit Union (STCU), first confirmed plans in 2018 to open branches in all three cities, citing the 2,300 Tri-Citians who were already members. That led to multiple branches across the community.
STCU, based in Liberty Lake, serves 207,000 members and $3.7 billion in assets, according to NCUA figures.
Richland-based Gesa Credit Union has 290,500 members and has assets of $5.5 billion.
HAPO Community Credit Union, also based in Richland, has 208,000 members and $2.4 billion in assets, according to NCUA reports.
This story was originally published September 27, 2024 at 5:00 AM.